Monday, August 03, 2009
KATHY SHWIFF, The Wall Street Journal,
KATHY SHWIFF, The Wall Street Journal,
SEC Seeks $22.5 Million From Former Kmart Chief Executive, Charles Conaway
The Securities and Exchange Commission is seeking about $22.5 million from Kmart's former chief executive for misleading investors just before the company filed for bankruptcy. The agency has asked a federal magistrate in Michigan to impose a $8.9 million penalty on Charles C. Conaway and to require him to give back a total of $13.7 million in ill-gotten gains.
The agency also seeks to permanently bar Mr. Conaway from serving as an officer or director of a public company and asked the judge to prohibit Mr. Conaway from receiving any part of his penalty from a third party.
In June, the SEC said a Michigan jury upheld all of its civil charges against Mr. Conaway, who was accused of making misrepresentations and omissions about the company's financial state in its 10Q filing for the third quarter and nine months ending Oct. 31, 2001, and in an earnings conference call.
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Posted by Editor on 08/03/09 at 06:17 AM •
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